Why Are NFTs So Popular?

The new decade has brought an unimaginable rush of traffic to the highly speculative NFT market. These trendy digital avatars are flying off the shelf, some for millions of dollars.

So why NFTs? What makes the so valuable?

Let’s start with the basics! An NFT (non-fungible token) consists of a unique digital code encrypted on a blockchain which cannot be duplicated, this code is tied to a digital asset stored somewhere on the internet. This creates proven ownership of that digital asset, which makes sense seeing the NFT market of JPEGs, Tweets and Youtube videos.

It all seems crazy to think that someone would buy a picture that they can just download for free from the internet, but this sensation has become much more than that. Musicians and artists can now mint and hold ownership of their content. Allowing them to be in complete control of the rights rather than placing them in the hands of sometimes predatory third parties.

The uniquely designed smart contracts allow for royalties and rules to be programmed directly into the asset eliminating the need for costly lawyers and time-consuming legal settlements.

NFTs can also serve as a digital community membership allowing creators to attach extrinsic value to the asset. Projects like Vee Friends, The Board Ape Yacht Club and Hype Hyena Disco have all created NFTs where the community benefits from the success of the project, providing access to events, property and the exclusivity of ownership.

Will the NFT market slow down? Maybe, but if it doesn’t now you know why!